Investing in J.P Morgan Chase
Before you start an investment one usually needs to know about the company, I say usually,
because there is investor focused only in numbers, which is a riskier but more rewarding type of
investment.
JPMorgan Chase & Co. is an American multinational investment bank and financial
services holding company headquartered in New York City. JPMorgan Chase is ranked by S&P
Global as the largest bank in the United States and the sixth largest bank in the world by total
assets, with total assets of US$2.73 trillion. It is also the world's most valuable bank by market
capitalization. JPMorgan Chase is incorporated in New York City. Founded 220 years ago.
JP Morgan’s assets, 2764 Billion dollars; Liabilities, 2500 Billion dollars; Shareholder equity,
264 Billion dollars; profit margin is 24.7% (Net-income after tax/Net sales), Debt-to-equity is at
1.26 (Total Liabilities/Total equity), Operating Margin is 24.15% (Operating income/ Net sales)
As for today, 12/17/19 at 8:00 am the stock market of JP Morgan is at 137.30 US$, with a market
cap of 430.8k M dollars. 12 months ago, the stock market price was at around 100 dollars. This
year stock market has grown reaching all-time records. As well, home and auto lending keep
growing, strengthening banks.
When compared with Wells Fargo, the second one is currently at 54$, with a market cap of
229.3k M. Around a year ago, the stock was at about 46 US$. The down part of Wells Fargo is
that it had huge drops and rises, therefore, investing in a bank like Wells Fargo is a risky
business. The good thing of investing in Wells Fargo, is that if it is in a low, it is likely to go up,
and costing less than JP Morgan, it is less hurtful to lose
Wells Fargo assets, 1943 Billion dollars; Liabilities, 1749 Billion Dollars; Shareholder equity,
194 Billion dollars; Profit Margin, 21.67%; Debt-to-equity, 1.33, Operating Margin 21.67%.
On the other hand, keeping in touch with banks short-term investments, and long-term
investments is hard. Also, as economy has been steady for over 10 years now, any time the
economy might break and destroy banks, therefore destroying your investments. Also, President
Trump may get impeached, and this might break the stock, so one must be prepared this happens.
So, in conclusion, JP Morgan is a very conservative investment, due that it won’t have a huge
drop or a huge increase but have a steady growth/fall. On the other hand, Wells Fargo, is a much
volatile and unpredictable stock compared to JP Morgan, so if you are trying to risk your money,
the second one is the best.